Nifty - Bearish head and shoulder patternNifty is forming head and shoulder top pattern, which can indicate a bearish reversal if confirmed. With the neckline at 24,590, a close below that level would indeed suggest selling pressure. Placing your stop loss above the last swing high is a prudent strategy to manage risk.
For the target based on the measurement rule, you would typically subtract the height of the head to the neckline from the neckline level.
It’s also worth noting that the 50-day EMA slope downwards adds further confirmation to our analysis. Just ensure to keep an eye on volume and any macroeconomic factors that could influence price movement. How are you planning to execute your trade?
*** Nifty is currently above neckline please wait for confirmation ***
